<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the consolidated balance sheet of AT&T Corp. at December 31, 1998, and the consolidated statement of income for the twelve-month period ended December 31, 1998, and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 3,160 <SECURITIES> 0 <RECEIVABLES> 10,115 <ALLOWANCES> 1,060 <INVENTORY> 0 <CURRENT-ASSETS> 14,118 <PP&E> 52,277 <DEPRECIATION> 25,374 <TOTAL-ASSETS> 59,550 <CURRENT-LIABILITIES> 15,442 <BONDS> 5,556 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 2,630 <OTHER-SE> 22,892 <TOTAL-LIABILITY-AND-EQUITY> 59,550 <SALES> 0 <TOTAL-REVENUES> 53,223 <CGS> 0 <TOTAL-COSTS> 45,736 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 1,389 <INTEREST-EXPENSE> 427 <INCOME-PRETAX> 8,307 <INCOME-TAX> 3,072 <INCOME-CONTINUING> 5,235 <DISCONTINUED> 1,300 <EXTRAORDINARY> (137) <CHANGES> 0 <NET-INCOME> 6,398 <EPS-BASIC> 2.39 <EPS-DILUTED> 2.37